Understanding Trading Platforms & Technology

One of the major upsides for any trader these days is the fact that unlike decades ago, trading platforms have now fully embraced technology. It’s an innate part of the trading experience, to the point where it has become a sheer necessity to use tech if you don’t want to fall behind as a trader. Which is great, because not only is it creative, it also brings in a multitude of advantages if you embrace it.

What are trading platforms doing?

It’s basically software offered by a brokerage which allows investors to not only buy, but also sell financial assets in an electronic fashion.

The idea here is that modern platforms are a complete trading environment. You can do a lot of tasks, ranging from monitoring live marketplace prices to studying charts, placing and modifying orders, tracking portfolio performance, along with setting alerts, accessing research and managing the account balance. And since a lot of the time these things are web-based, you can easily access them from anywhere, even from your phone.

How did technology evolve in trading?

Over the past 2 decades, we have seen a complete focus on tech, to the point where it has managed to overtake the market, and that is a good thing. Today, we have AI, cloud computing, real time analytics, machine learning and very fast data processing. Those things and other tech help enhance the trading experience, while pushing the boundaries and offering something completely different.

Some of the top tech improvements we have seen are real time streaming market data, charting software, mobile trading apps, algorithmic trading support, cloud based syncing, AI-assisted market analysis, faster trade execution, enhanced cyber security, along with many others. Being able to access these innovations is amazing, and it helps take your experience to the next level as a trader. It’s also why some of the best brokers are continually integrating this type of features, in an effort to offer customers the best value for money and a great experience.

Types of trading platforms you can use

What’s great about trading these days is that you have access to a plethora of platform types. They can give you lots of features and benefits, and it all comes down to you to narrow down on the type of platform that you are looking for, naturally.

• Web-based platforms are great for a lot of people because you don’t need to install software. You can access from multiple devices, you have automatic updates, and the account management experience is very convenient, which matters quite a lot.
• Additionally, you have desktop platforms that offer more customization, better performance, advanced charting and professional trading tools. Active traders prefer these because they are more flexible and also a lot faster, too.
• Mobile trading apps are very popular, and they allow you to open and close positions, view the live charts, receive market alerts, monitor portfolios, deposit and withdraw funds, but also read financial news.

UI and ease of use

These days, people care about the way the app looks and how easy it is to function properly. The reality is that a bad UI can hamper the experience, even if the trading platform itself is quite good. And that’s the thing, you want to be able to find financial instruments, view the account balances, analyze charts, execute trades, access research tools and customize layouts.

Technical analysis and charting

One of the interesting things that help traders and which is due to tech is the technical analysis side. As a trader, you always want to focus on streamlining the process and pushing the limits to the best of your capabilities. Multiple chart types, adjustable time frames, trend lines, volume analysis, pattern recognition are all features that every major trading platform should be able to cover. Having access to those things will help immensely, and it has the potential to convey a much better value and quality than you expect.

Order types

These have also managed to grow thanks to the different platform options. You have market orders, limit orders, stop orders, stop-loss orders, take-profit orders, trailing stops and so on. In general, a platform needs to have access to various order types, as it allows traders more control, but also improved visibility as well, and that alone can be a game-changer in these situations.

Speed and reliability

One of the things that technology was able to improve upon was definitely speed. These days, platforms are really fast, and they tend to have very little downtime. You do want to focus on connection failures, price delays, slippage, downtime and latency, where possible. That way, you can figure out what is the best platform and where you are getting the best experience as an user. That alone is certainly a game changer.

Real time market data

Thanks to tech, we also have access to real time market data, which helps make the trading experience better. You can enjoy things like live quotes, price charts, market depth, economic calendars, company announcements, earnings releases and so on. Some brokers are offering delayed data for free, but if you want to access professional-grade market fees, you have to pay a premium.

Additionally, tech is making it easier to access research tools. Those can be great when we also take into account daily market commentary, analyst ratings, economic news, watchlists, sector performance, market sentiment indicators and so on. Having access to all those amazing features is a game-changer, and it can help improve and optimize your trading experience going forward.

Closing thoughts

Clearly, a good trading platform needs to be efficient and to offer customers a great amount of value. But it all comes down to the return on investment you want to get, and what value is there for you. The great thing is that technology has become very easy to integrate these days, and it’s very much a necessity in the case of most people. That’s why you want to know how to take advantage of it, and how to avail the opportunity, because it can help you become a better trader.